Back to Basics: Basic Research Spillovers, Innovation Policy and Growth

Ufuk Akcigit, Douglas Hanley and Nicolas Serrano-Velarde

PIER Working Paper Archive from Penn Institute for Economic Research, Department of Economics, University of Pennsylvania

Abstract: This paper introduces a model of endogenous growth through basic and applied research. Basic research differs from applied research in the nature and the magnitude of the generated spillovers. We propose a novel way of empirically identifying these spillovers and embed them in a general equilibrium framework with private firms and a public research sector. After characterizing the equilibrium, we estimate our model using micro-level data on research expenditures by French firms. Our key finding is that standard R&D policies can accentuate the dynamic misallocation in the economy. We also find a strong complementarity between the property rights of basic research and the optimal funding of public research.

Keywords: Innovation; basic research; applied research; research and development; government spending; endogenous growth; spillover (search for similar items in EconPapers)
JEL-codes: L78 O31 O38 O40 (search for similar items in EconPapers)
Pages: 57 pages
Date: 2013-09-18
New Economics Papers: this item is included in nep-cse, nep-dge, nep-ino and nep-knm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (22)

Downloads: (external link)
https://economics.sas.upenn.edu/sites/default/files/filevault/13-051.pdf (application/pdf)

Related works:
Journal Article: Back to Basics: Basic Research Spillovers, Innovation Policy, and Growth (2021)
Working Paper: Back to Basics: Basic Research Spillovers, Innovation Policy and Growth (2016)
Working Paper: Back to Basics: Basic Research Spillovers, Innovation Policy and Growth (2013)
Working Paper: Back to Basics: Basic Research Spillovers, Innovation Policy and Growth (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pen:papers:13-051

Access Statistics for this paper

More papers in PIER Working Paper Archive from Penn Institute for Economic Research, Department of Economics, University of Pennsylvania 133 South 36th Street, Philadelphia, PA 19104. Contact information at EDIRC.
Bibliographic data for series maintained by Administrator ().